Roller-Coaster High-Yield Bond Market Slows

High-yield issuance built up a head of steam early last year, only to hit the skids in the second half of last year

By

Edward Russell-Walling

February 6, 2015 9:16 p.m. GMT

High-yield bonds were issued in record numbers in Europe last year, helped by a sharp acceleration in activity through the first half. However, the roller-coaster ride is likely to smooth out in 2015 as the recent refinancing wave subsides, accompanied by a rise in the leveraged loan market.

The issuance of junk bonds, such as those rated below Baa3 by rating agency Moody's or lower than BBB- by Standard & Poor's, first took off in 2013, with issuance jumping 57% to a record $143 billion, according to data provider Dealogic.